Sources told PTI that the Pakistan People's Party-led government, which will complete its five-year term on March 16, has decided to leave the issue of giving MFN-status to India to the administration that will be formed after the general election expected to be held in May.

In a separate development, Foreign Secretary Jalil Abbas Jilani today informed the Standing Committee on Foreign Affairs of the Senate or upper house of parliament that trade between India and Pakistan has touched USD 2 billion a year.

However, Jilani told the parliamentary panel that "true friendship between Pakistan and India cannot be established without the solution of contentious issues".

He acknowledged that conflict between the two countries would have "catastrophic effects on the region", state-run Radio Pakistan reported.